Category: Texas Business Law

Can an Employee Prepare to Compete with His Employer While Still on the Employer’s Payroll?

In Texas, employees have the right to resign from employment and go into business in competition with their employers (absent a non-compete agreement). There is nothing legally wrong in engaging in such competition or in preparing to compete before the employment terminates. Thus, as…

Failure to Define “Fee” in a Contract Results in a $5.5M Award Against Yahoo!

When contractual language is not clear, a lot of times, the court will look at the intent of the parties in entering into the contract and analyze the entire contract to make sure that its interpretation of the disputed clause does not contradict or render other parts of the contract meaningless.

When Stopping Competition with A Temporary Injunction, It Pays To Be Precise

A lot of times a company rushes to court asking the judge to stop a former employee or his new employer from using the company’s confidential information or soliciting its customers based on the agreements that the former employee had signed with the company.    

Top Five Posts In 2016

While most of my blog posts relate to non-compete and trade secrets issues, I do blog about general commercial and employment issues as well since I have a broad employment and business litigation practice. According to you, here’s the top five posts in 2016:…

Is a Client List a Trade Secret in Texas?

A “list of actual or potential customers or suppliers” of a company qualifies as a trade secret as long as: (1) its owner, i.e. the company, took reasonable measures to keep it secret and (2) the list has an economic value because it is not generally known and cannot be easily determined by another person. 

Employees’ Unauthorized Copying of Electronic Files is Not Theft in Texas

Before pleading a Texas Theft Liability Act claim against an employee for stealing the company’s data, information, documents, or other property, the company should make sure that there is at least some evidence of the employee’s intent to deprive the company of its property.

Enforcing Non-Compete Agreements in Arbitration in Texas

While an arbitration may generally provide a faster, cheaper, and more confidential route for resolving a noncompete dispute than litigation, it can be an inferior process when it comes to obtaining a temporary injunction in a situation where time is of the essence.

Renewing Non-Disclosure Agreements with Employees? Consider this . . .

In my practice, I see this scenario all the time: an employee leaves to work for a competitor, the employer realizes that its non-disclosure (NDA) or non-compete agreement was inadequate to protect it from what just happened, so the company rolls out a new…

Texas Amends Its Trade Secrets Statute Effective September

Texas’ recent amendments to its trade secrets statute made it the most comprehensive and modern statute in the nation. It is the only statute in the nation that addresses when a competitor can be excluded from the courtroom to prevent disclosure of trade secrets during the lawsuit.

Enforcing Non-Compete Agreements in Texas – The Issue of Consideration

In this state, the consideration must have a “reasonable relationship” to the employer’s interest in restraining the employee from competing. Simply restricting an employee from lawful competition for the sake of preventing competition will almost certainly fail.